Professional Documents
Culture Documents
EXTRAORDINARY
PART II — Section 1
PUBLISHED BY AUTHORITY
NO. 12 NEW DELHI, TUESDAY, JANUARY 14, 2003 / PAUSA 24, 1924
Separate paging is given to this Part in order that it may be
filed as a separate compilation.
CHAPTER I
PRELIMINARY
Definitions
2. In this Act, unless the context otherwise requires,—
(a) "acquisition" means, directly or indirectly, acquiring or agreeing to acquire—
(i) shares, voting rights or assets of any enterprise; or
(ii) control over management or control over assets of any enterprise;
(b) "agreement" includes any arrangement or understanding or action in concert,—
(i) whether or not, such arrangement, understanding or action is formal or in writing; or
(ii) whether or not such arrangement, understanding or action is intended to be enforceable
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by legal proceedings;
(c) "cartel" includes an association of producers, sellers, distributors, traders or service providers
who, by agreement amongst themselves, limit, control or attempt to control the production,
distribution, sale or price of, or, trade in goods or provision of services;
(d) "Chairperson" means the Chairperson of the Commission appointed under sub-section (1) of
section 8;
(e) "Commission" means the Competition Commission of India established under sub-section (1)
of section 7;
(f) "consumer" means any person who—
(i) buys any goods for a consideration which has been paid or promised or partly paid and
partly promised, or under any system of deferred payment and includes any user of such
goods other than the person who buys such goods for consideration paid or promised or
partly paid or partly promised, or under any system of deferred payment when such use
is made with the approval of such person, whether such purchase of goods is for resale
or for any commercial purpose or for personal use;
(ii) hires or avails of any services for a consideration which has been paid or promised or
partly paid and partly promised, or under any system of deferred payment and includes
any beneficiary of such services other than the person who hires or avails of the services
for consideration paid or promised, or partly paid and partly promised, or under any
system of deferred payment, when such services are availed of with the approval of the
first-mentioned person whether such hiring or availing of services is for any commercial
purpose or for personal use;
(g) "Director General" means the Director General appointed under sub-section (1) of section 16
and includes any Additional, Joint, Deputy or Assistant Directors General appointed under that
section;
(h) "enterprise" means a person or a department of the Government, who or which is, or has
been, engaged in any activity, relating to the production, storage, supply, distribution, acquisition
or control of articles or goods, or the provision of services, of any kind, or in investment, or in the
business of acquiring, holding, underwriting or dealing with shares, debentures or other securities
of any other body corporate, either directly or through one or more of its units or divisions or
subsidiaries, whether such unit or division or subsidiary is located at the same place where the
enterprise is located or at a different place or at different places, but does not include any activity
of the Government relatable to the sovereign functions of the Government including all activities
carried on by the departments of the Central Government dealing with atomic energy, currency,
defence and space.
Explanation.-—For the purposes of this clause,—
(a) "activity" includes profession or occupation;
(b) "article" includes a new article and "service" includes a new service;
(c) "unit" or "division", in relation to an enterprise, includes—
(i) a plant or factory established for the production, storage, supply, distribution, acquisition
or control of any article or goods;
(ii) any branch or office established for the provision of any service;
(i) "goods" means goods as defined in the Sale of Goods Act, 1930 (8 of 1930) and includes—
(A) products manufactured, processed or mined;
(B) debentures, stocks and shares after allotment;
(C) in relation to goods supplied, distributed or controlled in India, goods imported into India;
(j) "Member" means a Member of the Commission appointed under sub-section (/) of section8
and includes the Chairperson;
(k) "notification" means a notification published in the Official Gazette;
(l) "person" includes—
(i) an individual;
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(ii) a Hindu undivided family;
(iii) a company;
(iv) a firm;
(v) an association of persons or a body of individuals, whether incorporated or not, in India
or outside India;
(vi) any corporation established by or under any Central, State or Provincial Act or a
Government company as defined in section 617 of the Companies Act, 1956 (1 of
1956);
(vii) any body corporate incorporated by or under the laws of a country outside India;
(viii) a co-operative society registered under any law relating to cooperative societies;
(ix) a local authority;
(x) every artificial juridical person, not falling within any of the preceding sub-clauses;
(m) "practice" includes any practice relating to the carrying on of any trade by a person or an
enterprise;
(n) "prescribed" means prescribed by rules made under this Act;
(o) "price", in relation to the sale of any goods or to the performance of any services, includes
every valuable consideration, whether direct or indirect, or deferred, and includes any
consideration which in effect relates to the sale of any goods or to the performance of any
services although ostensibly relating to any other matter or thing;
(p) "public financial institution" means a public financial institution specified under section 4A of
the Companies Act, 1956 (1 of 1956) and includes a State Financial, Industrial or Investment
Corporation;
(q) "regulations" means the regulations made by the Commission under section 64;
(r) "relevant market" means the market which may be determined by the Commission with
reference to the relevant product market or the relevant geographic market or with reference to
both the markets;
(s) "relevant geographic market" means a market comprising the area in which the conditions of
competition for supply of goods or provision of services or demand of goods or services are
distinctly homogenous and can be distinguished from the conditions prevailing in the
neighbouring areas;
(t) "relevant product market" means a market comprising all those products or services which are
regarded as interchangeable or substitutable by the consumer, by reason of characteristics of the
products or services, their prices and intended use;
(u) "service" means service of any description which is made available to potential users and
includes the provision of services in connection with business of any industrial or commercial
matters such as banking, communication, education, financing, insurance, chit funds, real estate,
transport, storage, material treatment, processing, supply of electrical or other energy, boarding,
lodging, entertainment, amusement, construction, repair, conveying of news or information and
advertising;
(v) "shares" means shares in the share capital of a company carrying voting rights and includes—
(i) any security which entitles the holder to receive shares with voting rights;
(ii) stock except where a distinction between stock and share is expressed or implied;
(w) "statutory authority" means any authority, board, corporation, council, institute, university or
any other body corporate, established by or under any Central, State or Provincial Act for the
purposes of regulating production or supply of goods or provision of any services or markets
therefor or any matter connected therewith or incidental thereto;
(x) "trade" means any trade, business, industry, profession or occupation relating to the
production, supply, distribution, storage or control of goods and includes the provision of any
services;
(y) "turnover" includes value of sale of goods or services;
(z) words and expressions used but not defined in this Act and defined in the Companies Act,
1956 (1 of 1956) shall have the same meanings respectively assigned to them in that Act.
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CHAPTER II
PROHIBITION OF CERTAIN AGREEMENTS, ABUSE OF DOMINANT
POSITION AND REGULATION OF COMBINATIONS
Prohibition of agreements
Anti competitive agreements
3. (1) No enterprise or association of enterprises or person or association of persons shall enter
into any agreement in respect of production, supply, distribution, storage, acquisition or control of
goods or provision of services, which causes or is likely to cause an appreciable adverse effect
on competition within India.
(2) Any agreement entered into in contravention of the provisions contained in subsection (1)
shall be void.
(3) Any agreement entered into between enterprises or associations of enterprises or persons or
associations of persons or between any person and enterprise or practice carried on, or decision
taken by, any association of enterprises or association of persons, including cartels, engaged in
identical or similar trade of goods or provision of services, which—
(a) directly or indirectly determines purchase or sale prices;
(b) limits or controls production, supply, markets, technical development, investment or
provision of services;
(c) shares the market or source of production or provision of services by way of allocation of
geographical area of market, or type of goods or services, or number of customers in the
market or any other similar way;
(d) directly or indirectly results in bid rigging or collusive bidding, shall be presumed to have
an appreciable adverse effect on competition:
Provided that nothing contained in this sub-section shall apply to any agreement entered into by
way of joint ventures if such agreement increases efficiency in production, supply, distribution,
storage, acquisition or control of goods or provision of services.
Explanation.—For the purposes of this sub-section, "bid rigging" means any agreement, between
enterprises or persons referred to in sub-section (3) engaged in identical or similar production or
trading of goods or provision of services, which has the effect of eliminating or reducing
competition for bids or adversely affecting or manipulating the process for bidding
(4) Any agreement amongst enterprises or persons at different stages or levels of the production
chain in different markets, in respect of production, supply, distribution, storage, sale or price of,
or trade in goods or provision of services, including—
(a) tie-in arrangement;
(b) exclusive supply agreement;
(c) exclusive distribution agreement;
(d) refusal to deal;
(e) resale price maintenance,
shall be an agreement in contravention of sub-section (1) if such agreement causes or is likely to
cause an appreciable adverse effect on competition in India.
Explanation.—For the purposes of this sub-section,—
(a) "tie-in arrangement" includes any agreement requiring a purchaser of goods, as a
condition of such purchase, to purchase some other goods;
(b) "exclusive supply agreement" includes any agreement restricting in any manner the
purchaser in the course of his trade from acquiring or otherwise dealing in any goods
other than those of the seller or any other person;
(c) "exclusive distribution agreement" includes any agreement to limit, restrict or withhold
the output or supply of any goods or allocate any area or market for the disposal or sale
of the goods;
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(d) "refusal to deal" includes any agreement which restricts, or is likely to restrict, by any
method the persons or classes of persons to whom goods are sold or from whom
goods are bought;
(e) "resale price maintenance" includes any agreement to sell goods on condition that the
prices to be charged on the resale by the purchaser shall be the prices stipulated by
the seller unless it is clearly stated that prices lower than those prices may be charged.
(5) Nothing contained in this section shall restrict—
(i) the right of any person to restrain any infringement of, or to impose reasonable conditions, as
may be necessary for protecting any of his rights which have been or may be conferred upon him
under—
(a) the Copyright Act, 1957 (14 of 1957);
(b) the Patents Act, 1970 (39 of 1970);
(c) the Trade and Merchandise Marks Act, 1958 (43 of 1958) or the Trade Marks Act, 1999
(47 of 1999);
(d) the Geographical Indications of Goods (Registration and Protection) Act, 1999 (48 of
1999);
(e) the Designs Act, 2000 (16 of 2000);
(f) the Semi-conductor Integrated Circuits Layout-Design Act, 2000 (37 of 2000);
(ii) the right of any person to export goods from India to the extent to which the agreement relates
exclusively to the production, supply, distribution or control of goods or provision of services for
such export.
Regulation of combinations
Combination
5. The acquisition of one or more enterprises by one or more persons or merger or amalgamation
of enterprises shall be a combination of such enterprises and persons or enterprises, if—
(a) any acquisition where—
(i) the parties to the acquisition, being the acquirer and the enterprise, whose control,
shares, voting rights or assets have been acquired or are being acquired jointly have,—
(A) either, in India, the assets of the value of more than rupees one thousand crores or
turnover more than rupees three thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than five
hundred million US dollars or turnover more than fifteen hundred million US dollars;
or
(ii) the group, to which the enterprise whose control, shares, assets or voting rights have
been acquired or are being acquired, would belong after the acquisition, jointly have or
would jointly have,—
(A) either in India, the assets of the value of more than rupees four thousand crores or
turnover more than rupees twelve thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than two
billion US dollars or turnover more than six billion US dollars; or
(b) acquiring of control by a person over an enterprise when such person has already direct or
indirect control over another enterprise engaged in production, distribution or trading of a similar
or identical or substitutable goods or provision of a similar or identical or substitutable service, if—
(i) the enterprise over which control has been acquired along with the enterprise over which
the acquirer already has direct or indirect control jointly have,—
(A) either in India, the assets of the value of more than rupees one thousand crores or
turnover more than rupees three thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than five
hundred million US dollars or turnover more than fifteen hundred million US dollars;
or
(ii) the group, to which enterprise whose control has been acquired, or is being acquired,
would belong after the acquisition, jointly have or would jointly have,—
(A) either in India, the assets of the value of more than rupees four thousand crores or turnover
more than rupees twelve thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than two billion US
dollars or turnover more than six billion US dollars; or
(C) any merger or amalgamation in which—
(i) the enterprise remaining after merger or the enterprise created as a result of the
amalgamation, as the case may be, have,—
(A) either in India, the assets of the value of more than rupees one thousand crores or
turnover more than rupees, three thousand crores; or
(B) in India or outside India, in aggregate, the assets of the value of more than five
hundred million US dollars or turnover more than fifteen hundred million US dollars;
or
(ii) the group, to which the enterprise remaining after the merger or the enterprise created as
a result of the amalgamation, would belong after the merger or the amalgamation, as the
case may be, have or would have,—
(A) either in India, the assets of the value of more than rupees four-thousand crores or
turnover more than rupees twelve thousand crores; or
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(B) in I ndia or outside India, the assets of the value of more than two billion US dollars or
turnover more than six billion US dollars.
Regulation of combinations
6. (1) No person or enterprise shall enter into a combination which causes or is likely to cause an
appreciable adverse effect on competition within the relevant market in India and such a
combination shall be void.
(2) Subject to the provisions contained in sub-section (1), any person or enterprise, who or which
proposes to enter into a combination, may, at his or its option, give notice to the Commission, in
the form as may be specified, and the fee which may be determined, by regulations, disclosing
the details of the proposed combination, within seven days of—
(a) approval of the proposal relating to merger or amalgamation, referred to in clause (c) of
section 5, by the board of directors of the enterprises concerned with such merger or
amalgamation, as the case may be;
(b) execution of any agreement or other document for acquisition referred to in clause (a) of
section 5 or acquiring of control referred to in clause (h) of that section.
(3) The Commission shall, after receipt of notice under sub-section (2), deal with such notice in
accordance with the provisions contained in sections 29, 30 and 31.
(4) The provisions of this section shall not apply to share subscription or financing facility or any
acquisition, by a public financial institution, foreign institutional investor, bank or venture capital
fund, pursuant to any covenant of a loan agreement or investment agreement.
(5) The public financial institution, foreign institutional investor, bank or venture capital fund,
referred to in sub-section (4\ shall, within seven days from the date of the acquisition, file, in the
form as may be specified by regulations, with the Commission the details of the acquisition
including the details of control, the circumstances for exercise of such control and the
consequences of default arising out of such loan agreement or investment agreement, as the
case may be.
Explanation.—For the purposes of this section, the expression—
(a) "foreign institutional investor" has the same meaning as assigned to it in clause (a) of the
Explanation to section 115AD of the Income-tax Act, 1961(43 of 1961);
(b) "venture capital fund" has the same meaning as assigned to it in clause (b) of the
Explanation to clause (23 FB) of section 10 of the Income-tax Act, 1961(43 of 1961);.
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CHAPTER III
COMPETITION COMMISSION OF INDIA
Establishment of Commission
7. (1) With effect from such date as the Central Government may, by notification, appoint, there shall be
established, for the purposes of this Act, a Commission to be called the "Competition Commission of
India".
(2) The Commission shall be a body corporate by the name aforesaid having perpetual succession and a
common seal with power, subject to the provisions of this Act, to acquire, hold and dispose of property,
both movable and immovable, and to contract and shall, by the said name, sue or be sued,
(3) The head office of the Commission shall be at such place as the Central Government may decide
from time to time.
(4) The Commission may establish offices at other places in India.
Composition of Commission
8. (1) The Commission shall consist of a Chairperson and not less than two and not more than ten other
Members to be appointed by the Central Government:
Provided that the Central Government shall appoint the Chairperson and a Member during the first year
of the establishment of the Commission.
(2) The Chairperson and every other Member shall be a person of ability, integrity and standing and who,
has been, or is qualified to be, a judge of a High Court; or, has special knowledge of, and professional
experience of not less than fifteen years in international trade, economics, business, commerce, law,
finance, accountancy, management, industry, public affairs, administration or in any other matter which, in
the opinion of the Central Government, may be useful to the Commission.
(3) The Chairperson and other Members shall be whole-time Members.
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Provided that the Chairperson or a Member shall, unless he is permitted by the Central Government to
relinquish his office sooner, continue to hold office until the expiry of three months from the date of receipt
of such notice or until a person duly appointed as his successor enters upon his office or until the expiry
of his term of office, whichever is the earliest.
(2) Notwithstanding anything contained in sub-section (1), the Central Government may, by order, remove
the Chairperson or any other Member from his office if such Chairperson or Member, as the case may
be,—
(a) is, or at any time has been, adjudged as an insolvent; or
(b) has engaged at any time, during his term of office, in any paid employment, or
(c) has been convicted of an offence which, in the opinion of the Central Government, involves moral
turpitude; or
(d) has acquired such financial or other interest as is likely to affect prejudicially his functions as a
Member; or
(e) has so abused his position as to render his continuance in office prejudicial to the public interest;
or
(f) has become physically or mentally incapable of acting as a Member.
(3) Notwithstanding anything contained in sub-section (2), no Member shall be removed from his office on
the ground specified in clause (d) or clause (e) of that subsection unless the Supreme Court, on a
reference being made to it in this behalf by the Central Government, has, on an inquiry, held by it in
accordance with such procedure as may be prescribed in this behalf by the Supreme Court, reported that
the Member, ought on such ground or grounds to be removed.
Salary and allowances and other terms and conditions of service of Chairperson and other
Members
14. (1) The salary, and the other terms and conditions of service, of the Chairperson and other Members,
including travelling expenses, house rent allowance and conveyance facilities, sumptuary allowance and
medical facilities shall be such as may be prescribed.
(2) The salary, allowances and other terms and conditions of service of the Chairperson or a Member
shall not be varied to his disadvantage after appointment.
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(a) any vacancy in, or any defect in the constitution of, the Commission; or
(b) any defect in the appointment of a person acting as a Chairperson or as a Member; or
(c) any irregularity in the procedure of the Commission not affecting the merits of the case.
CHAPTER IV
DUTIES, POWERS AND FUNCTIONS OF COMMISSION
Duties of Commission
18. Subject to the provisions of this Act, it shall be the duty of the Commission to eliminate practices
having adverse effect on competition, promote and sustain competition, protect the interests of
consumers and ensure freedom of trade carried on by other participants, in markets in India:
Provided that the Commission may, for the purpose of discharging its duties or performing its functions
under this Act, enter into any memorandum or arrangement with the prior approval of the Central
Government, with any agency of any foreign country.
Benches of Commission
22. (1) The jurisdiction, powers and authority of the Commission may be exercised by Benches thereof.
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(2) The Benches shall be constituted by the Chairperson and each Bench shall consist of not less than
two Members.
(3) Every Bench shall consist of at least one Judicial Member.
Explanation.—For the purposes of this sub-section, "Judicial Member" means a Member who is, or has
been, or is qualified to be, a Judge of a High Court.
(4) The Bench over which the Chairperson presides shall be the Principal Bench and the other Benches
shall be known as the Additional Benches.
(5) There shall be constituted by the Chairperson one or more Benches to be called the Mergers Bench
or Mergers Benches, as the case may be, exclusively to deal with matters referred to in sections 5 and 6.
(6) The places at which the Principal Bench, other Additional Bench or Mergers Bench shall ordinarily sit,
shall be such as the Central Government may, by notification, specify.
Provided that the Chairperson shall transfer, with the prior approval of the Central Government, a
Member from one Bench situated in one city to another Bench situated in another city.
(4) The Chairperson may, for the purpose of securing that any case or matter which, having regard to the
nature of the questions involved, requires or is required in his opinion or under the rules made by the
Central Government in this behalf, to be decided by a Bench composed of more than two Members, issue
such general or special orders as he may deem fit.
Jurisdiction of Bench
25. An inquiry shall be initiated or a complaint be instituted or a reference be made under this Act before
a Bench within the local limits of whose jurisdiction—
(a) the respondent, or each of the respondents, where there are more than one, at the time of the
initiation of inquiry or institution of the complaint or making of reference, as the case may be,
actually and voluntarily resides, or carries on business, or personally works for gain; or
(b) any of the respondents, where there are more than one, at the time of the initiation of the
inquiry or institution of complaint or making of reference, as the case may be, actually and
voluntarily resides or carries on business or personally works for gain provided that in such
case either the leave of the Bench is given, or the respondents who do not reside, or carry on
business, or personally work for gain, as aforesaid, acquiesce in such institution; or
(c) the cause of action, wholly or in part, arises.
Explanation.—A respondent, being a person referred to in sub-clause (iii) or sub-clause (vi) or sub-clause
(vii) or sub-clause (viii) of clause (l) of section 2, shall be deemed to carry on business at its sole or
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principal place of business in India or at its registered office in India or where it has also a subordinate
office at such place.
Acts taking place outside India but having an effect on competition in India
32. The Commission shall, notwithstanding that,—
(a) an agreement referred to in section 3 has been entered into outside India; or
(b) any party to such agreement is outside India; or
(c) any enterprise abusing the dominant position is outside India; or
(d) a combination has taken place outside India; or
(e) any party to combination is outside India; or
(f) any other matter or practice or action arising out of such agreement or dominant position or
combination is outside India, have power to inquire into such agreement or abuse of dominant
position or combination if such agreement or dominant position or combination has, or is likely
to have, an appreciable adverse effect on competition in the relevant market in India.
Rectification of orders
38. (1) With a view to rectifying any mistake apparent from the record, the Commission may amend any
order passed by it under the provisions of this Act.
(2) Subject to the other provisions of this Act, the Commission may make—
(a) an amendment under sub-section (1) of its own motion;
(b) an amendment for rectifying any such mistake which has been brought to its notice by any party
to the order.
Explanation.—- For the removal of doubts, it is hereby declared that the Commission shall not, while
rectifying any mistake apparent from record, amend substantive part of its order passed under the
provisions of this Act.
Appeal
40. Any person aggrieved by any decision or order of the Commission may file an appeal to the Supreme
Court within sixty days from the date of communication of the decision or order of the Commission to him
on one or more of the grounds specified in section 100 of the Code of Civil Procedure, 1908 (5 of 1908):
Provided that the Supreme Court may, if it is satisfied that the appellant was prevented by sufficient
cause from filing the appeal within the said period, allow it to be filed within a further period not exceeding
sixty days:
Provided further that no appeal shall lie against any decision or order of the Commission made with the
consent of the parties.
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CHAPTER V
DUTIES OF DIRECTOR GENERAL
CHAPTER VI
PENALTIES
Penalty for failure to comply with directions of Commission and Director General
43. If any person fails to comply with a direction given by—
(a) the Commission under sub-section (5) of section 36; or
(b) the Director General while exercising powers referred to in sub-section (2) of section 41, the
Commission shall impose on such person a penalty of rupees one lakh for each day during which
such failure continues.
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(c) wilfully alters, suppresses or destroys any document which is required to be furnished as
aforesaid, the Commission shall impose on such person a penalty which may extend to rupees
ten lakhs.
(2) Without prejudice to the provisions of sub-section (1), the Commission may also pass such other order
as it deems fit.
Contravention by companies
48. (1) Where a person committing contravention of any of the provisions of this Act or of any rule,
regulation, order made or direction issued thereunder is a company, every person who, at the time the
contravention was committed, was in charge of, and was responsible to the company for the conduct of
the business of the company, as well as the company, shall be deemed to be guilty of the contravention
and shall be liable to be proceeded against and punished accordingly:
Provided that nothing contained in this sub-section shall render any such person liable lo any punishment
if he proves that the contravention was committed without his knowledge or that he had exercised all due
diligence to prevent the commission of such contravention.
(2) Notwithstanding anything contained in sub-section (1), where a contravention of any of the provisions
of this Act or of any rule, regulation, order made or direction issued thereunder has been committed by a
company and it is proved that the contravention has taken place with the consent or connivance of, or is
attributable to any neglect on the part of, any director, manager, secretary or other officer of the company,
such director, manager, secretary or other officer shall also be deemed to be guilty of that contravention
and shall be liable to be proceeded against and punished accordingly.
Explanation.—For the purposes of this section,—
(a)"company" means a body corporate and includes a firm or other association of individuals: and
(b) "director", in relation to a firm, means a partner in the firm.
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CHAPTER VII
COMPETITION ADVOCACY
Competition advocacy
49. (1) In formulating a policy on competition (including review of laws related to competition), the Central
Government may make a reference to the Commission for its opinion on possible effect of such policy on
competition and on receipt of such a reference, the Commission shall, within sixty days of making such
reference, give its opinion to the Central Government, which may thereafter formulate the policy as it
deems fit.
(2) The opinion given by the Commission under sub-section (1) shall not be binding upon the Central
Government in formulating such policy.
(3) The Commission shall take suitable measures, as may be prescribed, for the promotion of competition
advocacy, creating awareness and imparting training about competition issues.
CHAPTER VIII
FINANCE, ACCOUNTS AND AUDIT
Constitution of Fund
51. (1) There shall be constituted a fund to be called the "Competition Fund" and there shall be credited
thereto—
(a) all Government grants received by the Commission;
(b) the monies received as costs from parties to proceedings before the Commission;
(d) the fees received under this Act;
(e) the interest accrued on the amounts referred to in clauses (a) to (c).
(2) The Fund shall be applied for meeting—
(a) the salaries and allowances payable to the Chairperson and other Members and the
administrative expenses including the salaries, allowances and pension payable to the
Director General, Additional, Joint, Deputy or Assistant Directors General, the Registrar and"
officers and other employees of the Commission;
(b) the other expenses of the Commission in connection with the discharge of its functions and
for the purposes of this Act.
(3) The Fund shall be administered by a committee of such Members of the Commission as may be
determined by the Chairperson.
(4) The committee appointed under sub-section (3) shall spend monies out of the Fund for carrying out
the objects for which the Fund has been constituted.
CHAPTER IX
MISCELLANEOUS
Power to exempt
54. The Central Government may, by notification, exempt from the application of this Act, or any provision
thereof, and for such period as it may specify in such notification—
(a) any class of enterprises if such exemption is necessary in the interest of security of the State
or public interest;
(b) any practice or agreement arising out of and in accordance with any obligation assumed by
India under any treaty, agreement or convention with any other country or countries;
(c) any enterprise which performs a sovereign function on behalf of the Central Government or a
State Government:
Provided that in case an enterprise is engaged in any activity including the activity relatable to the
sovereign functions of the Government, the Central Government may grant exemption only in respect of
activity relatable to the sovereign functions.
Members, Director General, Registrar, officers and other employees, etc. of Commission to be
public servants
58. The Chairperson and other Members and the Director General, Additional, Joint, Deputy or Assistant
Directors General and Registrar and officers and other employees of the Commission shall be deemed,
while acting or purporting to act in pursuance of any of the provisions of this Act, to be public servants
within the meaning of section 21 of the Indian Penal Code (45 of 1860).
K. N. CHATURVEDI
Additional Secretary to the Govt. of India.
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